Fraud hit record levels – but blame the recession

Has Britain’s economic malaise contributed to the rise in fraud?

The latest analysis of fraud trends during 2011 by CIFAS – the UK’s Fraud Prevention Service – has revealed a disturbing 9% increase in the overall level of fraud, when compared with the previous year, with further key findings presenting a stark picture of the economic crime landscape in the UK.

Over 236,500 frauds were identified during 2011 by CIFAS members, the highest number ever recorded – and over 120,000 of those were individual cases with an identifiable victim. The continued blight of identity fraud accounted for over 113,000 fraud cases (a 10% increase from 2010 levels and representing 48% of all frauds).

There was an 18% surge in facility takeover fraud (where a fraudster gains access and fraudulently uses a victim’s account such as a credit card, bank account or mobile phone), meaning that this type of fraud has rocketed by nearly 300% in just five years.  In addition, 2011 saw a 13% rise in misuse of facility fraud (where an account, policy or other facility has been legitimately obtained but is later used fraudulently).

Richard Hurley, CIFAS Communications Manager, says: “It is vitally important to remember that fraud and economic crime are offences with a range of motivations. Many of these frauds will undoubtedly be committed by organised criminal elements, but many will also be committed by people who seemingly feel that their circumstances leave them no choice.

“Equally, financial desperation leaves many susceptible to potential scammers. Untangling the mess that fraud causes, irrespective of motivation, however, is time-consuming, damaging and costly to businesses, to the public sector and to individuals. Rather than being the ‘victimless crime’ it is sometimes heralded as, fraud actually makes victims of us all.”

Remember that with ProtectMyID membership you will be alerted to any sign of identity fraud and your credit report will be monitored for changes. If you suspect that you have been a victim of fraud, then ProtectMyID’s Fraud resolution assistance will ensure a dedicated caseworker will work with you to help you sort everything out from start to finish.

Share and Enjoy:
  • RSS
  • Facebook
  • Twitter
  • Digg
  • StumbleUpon
  • Print
  • email
Posted in CIFAS, identity fraud, Identity Fraud Statistics | Tagged , , | Leave a comment

When the fake tenant strikes

It’s bad enough when you share a flat with someone you are not sure whether or not to trust – but what if that person doesn’t even exist?

 A new threat that could affect tenants in apartment blocks is a scam in which fake tenants ‘rent’ out flats in blocks where post is delivered and left in communal areas. The ‘tenant’ – who will stay no longer than a few days – then goes through the real occupants’ post, looking for ID to steal with which to set up fraudulent credit cards and bank accounts. 

The agents or the landlords would probably have suspected nothing – the ‘phoney tenant’ will have probably produced all the ID checks and references necessary and paid rent and deposits upfront – but very likely with a stolen identity. 

One example, described here, led to a fraud being uncovered only after a police raid found a vast number of expensive items, including iPads and iPhones, bought using stolen credit and debit cards. They also found a set of keys for a flat ten miles away – the fake tenant had succeeded in stealing the identities of three of the six occupants in the block concerned. 

The agents were later informed that the ‘tenant’ had paid for his deposit & rent via a stolen debit card, and that the individual defrauded wanted their money refunded. 

So what can be done to help prevent this? Insurance specialist Michael Portman says: “Tenant fraud is a growing problem for agents and landlords alike. It is essential that agents have a checklist for new tenants that includes obtaining ID documents and proof of current residency at an early stage of the tenancy application.” Experian’s Check My Tenant service is a useful source for  helping landlords verify their tenant.

And for tenants, make sure you check your bank and credit card statements frequently so you can act quickly if you see anything unusual or irregular. With ProtectMyID membership you will be alerted to any signs of identity fraud, and get a dedicated expert to help you resolve any fraud issues should you have any.

Share and Enjoy:
  • RSS
  • Facebook
  • Twitter
  • Digg
  • StumbleUpon
  • Print
  • email
Posted in identity fraud, News Stories, Uncategorized | Tagged , | Leave a comment

A HOUSE IS NOT A HOME

Fraudsters will fake identities for a multitude of criminal activities to make money at someone else’s expense, but they will always end up getting found out if they take it a step too far.

Late in 2011 a London couple were found guilty of housing fraud after it was discovered that they had bought a council-owned home under the Right To Buy initiative using fake, stolen identities.

The couple were imprisoned for twenty months and two years respectively after an investigation by Southwark Council found that they had been letting a council property he had earlier bought using identity fraud.

It was only when his tenant claimed he was being illegally evicted, and the council’s tenancy relations service started looking into the case, that the deception was uncovered.

In addition to seeking £45,000 criminal damages from the couple, the council issued civil proceedings to recover outstanding account charges of £14,100 as well as ownership of the property.

Councillor Ian Wingfield, cabinet member for housing, said: “There are almost 20,000 people in need of housing in Southwark, so to try to obtain a home by deception then profit from it while other, genuine, applicants wait for a home is disgraceful.

“We will come down hard on anyone found to be illegally obtaining housing. Supplying falsified documents to the council, or any government authority, is against the law. We will pursue anyone attempting to defraud the public purse and we will recover associated funds.”

Identity theft can often lead to identity fraud which can seriously damage your credit rating – so it is always best to destroy any rubbish that contains personal information, including cheque stubs, receipts and bank statements.

With ProtectMyID membership you will be alerted to any signs of identity fraud, and get a dedicated expert to help you resolve any fraud issues should you have any.

Share and Enjoy:
  • RSS
  • Facebook
  • Twitter
  • Digg
  • StumbleUpon
  • Print
  • email
Posted in identity fraud, News Stories | Tagged , | Leave a comment

The iPad that crossed the border at Xmas

Proving your ID can be tricky sometimes, whether it’s showing that you’re old enough to be able to buy a drink or explaining at the bank that you are who you say are.

One area in which irrefutable proof of ID is sacrosanct is border control – unless you have a passport or a valid ID card, in many cases a biometric, new-fangled form of electronic identification, you can forget about being able to go from one country to the next.  Especially when it comes to the USA, which can (with the greatest respect) sometimes feels to non-Americans like a nightclub with the most rigid door policy.

However, a couple of weeks ago a Canadian man who forgot his passport managed to cross the border into the US – using a copy of it that he’d scanned on to his iPad.

Martin Reisch, a 33-year-old from Montreal, realised shortly before he approached the border that he did not have his passport with him. Although he had his standard drivers’ licence, that in itself would not be enough to get him past border control, as since 2009 Canadian citizens have needed either a passport or a NEXUS card (a NEXUS card is a form of ID for travelling between USA and Canada) to get into the USA.

Reisch told the border officers that he was only crossing over to deliver some Christmas presents in Vermont, and promptly presented them his iPad with the screen displaying his scanned passport.

As Reisch explained: “He took the iPad into the little border hut. He was in there a good five, six minutes. It seemed like an eternity. When he came back, he took a good long pause before wishing me a Merry Christmas.”

The officers may have made a Yuletide exception for the Canadian with the iPad, but it is by no means impossible that in the near future scanned identification may become standard practice.

With digital devices such as smartcards and chip and pin being used to combat the threat of ID fraud, it could only be a matter of time.

Remember, with ProtectMyID membership you will be alerted to any signs of identity fraud, and get a dedicated expert to help you resolve any fraud issues should you have any.

Share and Enjoy:
  • RSS
  • Facebook
  • Twitter
  • Digg
  • StumbleUpon
  • Print
  • email
Posted in News Stories | Tagged | Leave a comment

Passwords can get you prizes

The passwords you choose for your online banking, login details or other forms of entry protection are crucial.

Too easy and predictable, and it could be guessed by someone with the intention of committing ID Theft or gaining access to your personal finances. 

The most predictable of all in 2011 was ‘password’, followed by ‘123456’, ‘12345678’ and ‘qwerty’.

On a brighter note though. one of 2011’s best stories was that a joke related to online security matters won the prize for the funniest joke at this year’s Edinburgh Fringe.

A host of comedy critics spent two weeks looking for the best jokes, before making a top 30 shortlist and putting it to a public vote.

The winner was relatively unknown comedian Nick Helm, with this cracker that will bear repeating at every Xmas party:

    “I needed a password eight characters long-  so I picked Snow White and the Seven Dwarves.”

Merry Christmas and a Happy New Year from everyone at ProtectMyID – and stay safe over the holiday period.

Share and Enjoy:
  • RSS
  • Facebook
  • Twitter
  • Digg
  • StumbleUpon
  • Print
  • email
Posted in News Stories | Tagged | Leave a comment

UK Mortgage fraud is on the up

There was a 77% rise in attempted mortgage fraud in the three months to September 2011, compared to the same period in 2010, according to the latest findings from Experian’s Fraud Index.

No fewer than 49 of every 10,000 mortgage applications were found to be fraudulent, a figure 53% higher than the previous three months’ figures between April and June 2011.

Nick Mothershaw, Director of Identity & Fraud at Experian UK & Ireland, said: “More than 90 per cent of mortgage fraud tends to originate from genuine individuals misrepresenting their financial situations attempting to buy property that would ordinarily be out of reach. “

It wasn’t just mortgages that were targeted – 30 out of every 10,000 current bank accounts were revealed as fraudulent – an increase of 48% from a year ago.  Bogus savings account applications were up 47 per cent year on year and 16 per cent over the last quarter.

Mothershaw added: “Current accounts continue to be frequently targeted, which combined with the growth in savings account fraud, points towards an increasing trend for deposit accounts to be targeted for money laundering purposes or to then be used as a springboard to more lucrative credit products.”

Credit card fraud was also up – 7% in the past year – at 13 out of every 10,000 applications, though loan fraud remains the least targeted credit facility of the financial products Experian analyses, remaining constant at a rate of six fraudulent applications per 10,000 received.  Over the year this equates to a ten per cent decrease in fraud rates.

Share and Enjoy:
  • RSS
  • Facebook
  • Twitter
  • Digg
  • StumbleUpon
  • Print
  • email
Posted in identity fraud, Identity Fraud Statistics, News Stories | Tagged | Leave a comment

What is Cyber Monday?

Next Monday, November 28th, sees 2011’s ‘Cyber Monday’ – the day that heralds what is expected to be the busiest and most profitable week for online shopping websites as Christmas gets closer.

Why this week? Well, while Cyber Monday is basically an American invention, coinciding as it does with the end of Thanksgiving and the run-up to Christmas, it resonates in the UK too but for a different reason.

Initially used by Shop.org, part of the U.S. trade association National Retail Federation, in the 2005 Christmas season, its founding was based upon study expressing that 78% of online shops said there was a substantial increased amount of sales in the week following the Thanksgiving holiday in 2004.

A year later, the New York Times reported that: “The name Cyber Monday increased out from the observation that a large number of otherwise productive working Us citizens, fresh off a Thanksgiving weekend of window shopping, were returning to high-speed online connections at the office Monday and getting what they wanted.”[1]

In the UK however, it neatly coincides with a different Monday – the one that immediately follows most people’s final payday before the need to go Christmas shopping. As a result, enough people feel flush with disposable income to be able to do their online Christmas shopping now, in good time to get it delivered.

If you are shopping online of course, always ensure that you are visiting bona fide websites, and never input any personal information if you are in any doubt about the validity of the website you are on.

Top tips for spotting dubious transactions:

  • Ensure that your PC security software  is up-to-date
  • Go through every line of your statements every month
  • Query any transactions you don’t recognise, no matter how small.
  • Get a list of direct debits from your bank and make sure that you authorised all of them.

Find out more about staying safe online with some valuable tips from ProtectMyID.


[1] http://www.cybermonday2011.co.uk/

Share and Enjoy:
  • RSS
  • Facebook
  • Twitter
  • Digg
  • StumbleUpon
  • Print
  • email
Posted in identity fraud, News Stories | Tagged , , | Leave a comment

Scams cost shoppers £7 billion a year

Consumers are being conned out of £6.6 billion a year, according to a new report from MPs – but it could be avoided if there were better systems in place.

Increasing numbers of people are falling victim to email scams and credit card fraud while shopping online, while the protection systems in place have been unable to keep pace with the methods fraudsters use. Because consumer law is enforced on a regional basis, by local councils, criminals and rogue traders are targeting areas where policing is most likely to be less officious.

The cross-party House of Commons public accounts committee labelled the present system ‘inadequate’, and called for the Department for Business to provide consumers with ‘a system fit for the modern era’.

Margaret Hodge, chair of the committee, said: “Consumers are being ripped off to the tune of £7 billion a year by sellers of defective goods, dodgy doorstep traders and online fraudsters. But the arrangements for protecting victims are incoherent and fragmented.

“The National Audit Office reports that consumers lose an estimated £4.8 billion each year through regional or national malpractice and the enforcement system for dealing with scams at this level is inadequate.”

Only £34m was spent by central government on consumer protection at a regional and national level in 2009-10, and budgets for local authority standards are set to fall by a third, from £213m in 2009-10 to £140m in 2014.

Don’t forget that you can check your credit report for signs of ID fraud as a member of ProtectMyID.

Share and Enjoy:
  • RSS
  • Facebook
  • Twitter
  • Digg
  • StumbleUpon
  • Print
  • email
Posted in identity fraud, News Stories | Tagged , | Leave a comment

Case study: What happens when an ID fraudster strikes

It started with a simple looking letter – and still hasn’t ended even after six months of worry.

The first sign that Sam had been a victim of ID fraud was a letter on plain white paper with little branding, saying that he was behind on payments for a payday loan: “The letter looked like it could have been mocked up by anyone. But I rang the company, just in case. And not only were they for real, they said I owed £500. They just didn’t believe me when I said I hadn’t taken out the loan – they insisted it was in my name using my details.”

The loan company insisted that all the authentication checks as part of their application process had been passed – even though it turned out that the date of birth used wasn’t Sam’s. They also said they had called Sam on the number in the application to confirm release of the money – although this wasn’t Sam’s number so hardly proved anything. The clinching fact seemed to be that that the person impersonating Sam had set up a payday loan previously and paid it back in full – but this is a tactic fraudsters sometimes use to build up credibility with lenders so they can borrow (and steal) more later.

Seven more applications on his credit report

Sam signed up with us. “When I checked my credit report with ProtectMyID, I realised things were even more serious than they seemed. There were seven more applications for credit to pay day loans companies in my name, using my details. But I hadn’t made any of them. I felt at a complete loss.

“Someone was going round, pretending to be me, trying to borrow money in my name. I was so desperate, I even thought about paying off the £500 debt just so that I could sleep easier. But I couldn’t bring himself to pay a debt that was down to a criminal.”

We stepped in to help and found that several of the companies showing on his credit report had turned the applications down because of signs of fraud in the application process – something that would make it hard for Sam to legitimately get credit.

“ProtectMyID helped me get in touch with the other lenders, and several asked me to sign declarations that the applications were fraudulently in my name – and once I had, they removed all sign of them from my credit report.

“It was all very alarming though – the companies often wanted personal details to verify what I was saying, but I was worried about giving these to people I’d never heard of and had no dealings with.”

Court action starts

While everything else was sorted out, the original pay day loan company continued to contact Sam, saying that they thought he had applied for the loan and insisting he pay it back. The total amount they were asking for was going up and up as costs and charges were added on for non payment.

Eventually, Sam received a letter saying that the company had filed to take him to court over non payment of the debt. The court helped him fill in a witness statement.

After further investigation, Sam and the ProtectMyID Victims of Fraud team found out that the loan was paid in to an account with a bank that he doesn’t use –an account that wasn’t even in his name. But the bank said they couldn’t help further unless the payday loan company stated that the account had been used fraudulently. And it refused, because it still claimed that Sam was responsible.

At least his credit report is restored

Sam has spent hours working with the ProtectMyID team: “Thanks to their help, my credit report and financial standing are restored to how they were before the fraud was committed. But I’m in limbo, waiting for a court case that has been scheduled 6 months after the first letter I got. I’m also shocked that the onus seems to be on me to prove my innocence. The company should have to prove it if they claim I took out a loan and failed to pay it back.”

Lessons learned

So what would Sam do differently now? “The fraudster may have got my date of birth slightly wrong – but he knew enough about me to convince a lender that he was me and ran up debts in my name. I’m now much more careful about my personal details – I was paranoid even about giving them to the lenders the fraudster targeted to clear my name.

“The one specific thing I wish I had done was check my credit report regularly. The signs that I had been targeted were all there, with multiple applications in my name over some time. If I’d spotted that early on, I could have approached the lenders first.

“If I’d done that, maybe I wouldn’t be sitting here fretting about a court case where a judge could find me guilty of something I haven’t done. I’m the victim – but I’m the one who may end up paying.”

Share and Enjoy:
  • RSS
  • Facebook
  • Twitter
  • Digg
  • StumbleUpon
  • Print
  • email
Posted in identity fraud, Uncategorized | Tagged | Leave a comment

Katie Price is ID theft victim

Katie Price is the victim of a £14,000 identity fraud – after an impostor in a wig used her credit cards and accessed her bank accounts.

Three of Ms Price’s credit cards were declined, reports the Mirror.

Only then did she discover that a £9,000 withdrawal and two £2,500 ones had been made.

Someone had accessed the model’s ebay account using her credit card details – and the imposter had ordered goods using Katie’s real address for billing but with a different delivery address.

The ID fraudster had also attempted to open up accounts with other banks. The police have CCTV footage of a woman trying to withdraw cash. She is described as “someone dressing up as Kate with a blonde wig and big boobs, clearly impersonating her”.

Share and Enjoy:
  • RSS
  • Facebook
  • Twitter
  • Digg
  • StumbleUpon
  • Print
  • email
Posted in identity fraud, News Stories | Tagged , , | Leave a comment